Bank of Ireland could lose £36m after housing developer's closure

The defunct McDaid Developments owed the Bank of Ireland £42m but has assets of just £8m leaving a h

The Bank of Ireland is set to lose around £36m after the collapse of McDaid Developments, the Irish housing development company.

The Londonderry-based developer was put in administration in June. According to administrators report, filed at Companies House, the developer owed the bank £42m, but the sale of its remaining assets is expected to net less than £8m, leaving a huge shortfall.

The company, which had its registered office at Clooney Terrace, also owes around £800,000 to smaller unsecured creditors, many of whom are in County Donegal where McDaid did much of its business.

This money is likely to remain unpaid, the administrator has cautioned. Peter McDaid's the firm's owner, had personally guaranteed some of the company's borrowings, it has come to light.

When the company went into administration, it had over a dozen sites in various stages of development. McDaid lost over £6m for the year ending November 2008, a massive increase from a loss of a £500,000 a year before.